Czech Republic Inflation November 2016

Czech Republic: Inflation accelerates in November

December 9, 2016

In November, consumer prices in the Czech Republic grew 0.3% from the previous month, matching October’s reading. According to the Czech Statistical Office, the print mainly reflected an increase in prices for clothing and footwear as well as for transport.

Inflation edged up in November, increasing to an over three-year high of 1.5% from October’s 0.8%. Consequently, inflation moved into the Czech National Bank’s (CNB) target range of 1.0% to 3.0%. Annual average inflation in November was 0.5%, up from October’s 0.4%.

The CNB expects average inflation of 0.4% for 2016 and of 1.9% for 2017. FocusEconomics Consensus Forecast panelists project that inflation will average 0.6% in 2016, which is unchanged from last month’s Consensus. For 2017, panelists expect inflation of 1.6%, which is also unchanged from last month’s forecast.

GDP grew a multi-year high of 2.3% over the previous quarter in Q2 in seasonally and working-day adjusted terms, according to an advance estimate released by the National Statistics Office (CSO) on 16 August.